Artificial Intelligence

iRobot Files Bankruptcy, Acquired by Picea

Published DEC 15 2025

Story

Above: Roomba vacuums by iRobot displayed at Best Buy store in San Rafael, California, on Jan. 19, 2024. Image credit: Justin Sullivan/Getty Images

The Facts

iRobot, the Massachusetts-based firm known for its Roomba robot vacuums, filed for bankruptcy protection in Delaware on Sunday and agreed to be acquired by its primary supplier, Shenzhen-based Picea Robotics, which will receive all equity in the revamped business.
Financial Times
Business Insider
Founded in 1990 by Massachusetts Institute of Technology engineers, iRobot introduced robotic vacuum cleaners to consumers with its Roomba model in 2002, selling millions of units. Over the years, it faced falling market share due to competition from cheaper rivals.
NHK
Guardian
BBC News
iRobot's financial difficulties intensified in recent years amid supply chain issues, macroeconomic uncertainties and tariffs, including a 46% tariff on products manufactured in Vietnam, leading to reduced revenue and a net loss of $145.5 million last year.
Newsmax
Verge
In 2022, Amazon proposed acquiring iRobot for about $1.4 billion to integrate with its smart home products, but the deal was terminated in January 2024 due to regulatory concerns in the EU over potential reduced visibility for rival brands on Amazon's platform.
The Wall Street Journal
Mashable
Silicon Republic
Following the failed Amazon bid, iRobot received $94 million in termination compensation, part of which was used to pay advisory fees and repay a portion of a $200 million loan from Carlyle, while Picea's Hong Kong subsidiary later acquired the remaining debt.
Newsmax
Guardian
Under the restructuring agreement, iRobot expects to continue operations without disruptions to app functionality, product support, supply chain relationships, or commitments to employees and vendors, with the Picea acquisition expected to close in February 2026.
NHK
Engadget

Sources Split

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CENTER

RIGHT

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CRIT

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ESTAB

The Spin

Narrative A

European regulators killed iRobot by blocking Amazon's acquisition, destroying hundreds of U.S. jobs while handing the consumer robotics market to China's Ecovacs and Roborock. Biden's FTC colluded with the EU to cripple a key American firm in the AI and robotics race against China. This regulatory overreach must end before more U.S. tech firms are sacrificed to foreign bureaucrats and short-sighted antitrust-ism.

Innovators Network

NetChoice

Narrative B

iRobot's collapse stems from years of stagnant innovation and failure to compete with advanced Chinese rivals offering superior features at lower prices. While Roborock and Dreame introduced AI-powered arms and extendable legs, Roomba plateaued with overpriced models lacking wow factor. The company's designated pricing strategy backfired as Chinese competitors delivered better technology for less money.